The current situation of inflation in India is alarming. Inflation has reached a peak of double-digit in many sectors. The major concern is that the prices of essential commodities have increased. The reason behind this inflation is high oil prices, higher interest rates, and the weakening of the Indian rupee. The RBI has raised the interest rates to check the inflationary pressures. However, it has also adversely affected the growth of the economy. The Indian government has also taken many steps to check inflation.The steps taken by the government are not enough to curb inflation. Inflation can be combated through the use of a variety of long-term investment options. Your hard-earned money can be invested in various investment plans, such as Mutual Funds, FD schemes with fixed deposit rates, Public Provident Funds, Government Schemes, and many more, to grow your corpus and beat inflation.
Listed below are some of the ways to beat inflation with a proper investment plan
Fixed Deposits
A Fixed Deposit scheme is a good investment vehicle for those who want to know what to do with their money as soon as they make their first investment. A bank fixed deposit with high fixed deposit rates is one of the safest investments that provide moderate and stable returns. As the government backs, fixed deposits with best fixed deposit rates are considered a safe and secure investment option.
Mutual Funds
Investing in mutual funds has many benefits, such as the fact that you can invest indirectly in the stock market by utilizing the expertise of professional fund managers to invest in the stock market on your behalf. There is, however, a risk factor associated with equity mutual funds since most of their investments are made in volatile equity stocks. Conversely, debt mutual fund schemes provide investors with a steady investment return with a fixed rate over a long period.
Public Provident Fund
There is no doubt that Public Provident Funds are one of the best investments to consider, as they are government-backed schemes as similar to the FD scheme with high fixed deposit rates that offer guaranteed returns based on interest rates that are prevailing in the market. In the PPF, the government determines the interest rate, which may change every quarter, depending on the government’s decision.
National Saving Certificates
National Saving Certificate is a national savings scheme introduced by the Government of India. It is a small savings instrument that offers the investor a fixed interest rate for a specified period. The investment in National Saving Certificate is eligible for deduction from total gross income under section 80C. National Saving Certificate was introduced in 1955 to encourage small savings by the general public. The scheme is open to all Indian citizens, residents, or non-residents.
Direct Equity
Stocks are a class of assets that are highly volatile and are associated with a high level of risk. When choosing the right stock, knowing when and how to enter and exit the market is important. It is possible to lose a significant amount of money if you do not invest your money in stocks carefully and if you do not know how to invest money in stocks. If you diversify your portfolio across a variety of sectors and market capitalizations, you will be able to reduce this risk. There is no doubt that direct investment of money into stocks has produced better returns over the years than all other types of investments regarding the long-term performance of stocks compared to all other forms of assets.
Non-financial Assets
As the price of gold or real estate rises, there is no doubt that they will add value to your long-term investments as their value increases along with their price. Additionally, a real estate investment can yield a return in terms of capital appreciation or rental income, depending on the type of investment. To determine the value of your property and how much rent you can earn from it, you need to consider the property’s location.
